Shepherd Neame
Final results for the 53 weeks to 29 June 2024
Shepherd Neame, Britain's oldest brewer and owner and operator of 291 high quality pubs in Kent and the Southeast, today announces results for the 53 weeks ended 29 June 2024.
It has been a positive and encouraging period for the Company, with progress in all three divisions, achieving record revenues and a good uplift in profit.
Strong performances in retail, particularly in London and tenanted pubs
• Revenue for the year grew by +3.6% to a record £172.3m (2023: £166.3m).
• Statutory profit before tax grew by +38.1% to £6.8m (2023: £4.9m).
• Underlying profit before tax1 grew by +4.4% to £7.9m (2023: £7.6m).
• Underlying EBITDA2 grew by 6.4% to £25.1m (2023: £23.6m).
• Continued investment in the business. £14.6m of capital expenditure (2023: £17.2m), which was primarily inward investment.
• Basic earnings per share was 33.0p (2023: 23.5p). Underlying basic earnings per share3 was 37.8p (2023: 41.1p).
• Net asset value per share4 has increased to £12.17 (2023: £12.05).
• Full year dividend5 of 20.70p (2023: 20.00p), an increase of +3.5%.
Divisional highlights:
Retail: continued growth with particularly strong performance within M25
| Performance 2024 v 2023 |
|
| Total retail LFL sales6 | +4.9% |
| LFL drink sales | +7.2% |
| LFL food sales | +2.4% |
| LFL accommodation sales (224 rooms) | -1.8% |
• Retail LFL sales6 inside the M25 were +14.5% (2023: +30.6%) and outside the M25 +1.1% (2023: +6.6%).
• LFL occupancy was 71.3% (2023: 76.1%) and LFL RevPAR £83 (2023: £85).
• Divisional revenue in the retail estate on a 53-week basis was £82.9m (2023: £74.4m), up +11.4%. Divisional underlying operating profit was £9.3m (2023: £8.3m).
Tenanted trade continues to perform well
| Performance 2024 v 2023 |
|
| Tenanted LFL pub income7 | +4.6% |
| Average pub income8 | +4.3% |
• Divisional revenue in tenanted pubs on a 53-week basis was up +5.1% to £35.6m (2023: £33.9m) and divisional underlying operating profit was £12.8m (2023: £12.6m).
Beer profits up, but volume down, as business pivots from off-trade to drive growth in higher margin on-trade
| Performance 2024 v 2023 |
|
| Total beer volume9 | -11.8% |
| Own brewed volume10 | -17.2% |
• Divisional revenue in brewing and brands on a 53-week basis was £52.7m (2023: £56.9m), down -7.4%, but divisional underlying operating profit improved to £1.6m (2023: £1.0m).
• Performance in the independent on-trade has been strong with many high-profile new accounts won.
Current trading
| Performance versus 202411 | |
| 9 weeks to 31 Aug tenanted LFL pub income7 | +3.1% |
| 13 weeks to 28 September LFL retail sales6 | +3.8% |
| 13 weeks to 28 September total beer volumes9 | -11.5% |
| 13 weeks to 28 September own beer volumes10 | -12.8% |
Jonathan Neame, CEO of Shepherd Neame, said:
“We have seen further good progress in all three divisions.
We have great beers and pubs, a strong balance sheet and a well-balanced and cash-generative business. We have a strong pipeline of pub developments and new opportunities in our heartland on-trade. We are optimistic about the consumer outlook and are well positioned for the future, notwithstanding the ongoing cost headwinds we face.”
1Profit before any profit or loss on disposal of properties, investment property fair value movements and charges which are either material or infrequent in nature and do not relate to the underlying performance.
2Underlying profit/(loss) before tax pre net finance costs, depreciation, amortisation, profit or loss on sale of fixed assets excluding property, and free trade loan discounts.
3Underlying profit less attributable taxation divided by the weighted average number of ordinary shares in issue during the period. The numbers of shares in issue excludes those held by the Company and not allocated to employees under the Share Incentive Plan which are treated as cancelled.
4Net assets at the reporting date divided by the number of shares in issue, being 14,857,500 50p shares.
5The final dividend will be paid on 5 November to shareholders on the register at close of business on 18 October 2024. The ex-dividend date is 17 October 2024.
6Retail like-for-like sales includes revenue from the sale of drink, food and accommodation but excludes machine income. Like-for-like sales performance is calculated against a comparable 52-week period in the prior year for pubs that were in the estate in the same period within both years.
7Tenanted income calculated to exclude from both years those pubs which have not been in the estate throughout the two years. The principal exclusions are pubs purchased or sold, pubs which have closed, and pubs transferred to or from our retail business. Income is calculated against a comparable 52-week period in the prior year for pubs that were trading in both periods.
8Pub profit before depreciation, amortisation, rent and property costs and other cost allocations.
9Shepherd Neame branded, licensed, third party, customer own-label and contract beer and cider sales volumes.
10Shepherd Neame branded, licensed, customer own-label and contract beer and cider sales volumes.
11The periods referred to for financial year 2024 are the comparative month(s) of July, August & September 2023 which were during the financial year 53 weeks to 29 June 2024.
| Enquiries: |
|---|
| Shepherd Neame Limited |
| Jonathan Neame, Chief Executive Tel: 01795 532206 Mark Rider, Chief Financial Officer |
| Instinctif Partners |
| Matthew Smallwood Tel: 020 7457 2020 / Tel: 020 07457 2005 Justine Warren Tel: 020 7457 2010 |
For full details: